US SEC proposed rules recognize Gemini crypto custody platform
Tyler Winklevoss, the co-founder of Gemini, a cryptocurrency exchange, in a tweet, claims that their crypto custody service is recognized by the United States Securities and Exchange Commission (SEC).
Has the SEC cast a spotlight on the crypto firm?
On Wednesday, the SEC suggested significant modifications to federal laws. With these, the retention requirements will cover assets like cryptocurrencies.
Companies will also need to register and safeguard these clients’ assets. The vote was conducted after the SEC approved significant alterations to federal regulations. The proposition was supported by a vote of 1 to 4 overall.
This most recent move by the U.S. banking authority creates a new risk for the custody practices of crypto exchanges. This is because of the active efforts made by various federal regulators to limit the ability of custodians like banks to safeguard the crypto assets of their clients.
Nonetheless, the SEC has acknowledged the Gemini Trust as a competent guardian for cryptos, according to Tyler Winklevoss, the creator of the Gemini crypto exchange. Since 2015, the New York Banking Act has acknowledged the Gemini Trust Company LLC, a trust company in New York, as a competent guardian and fiduciary.
Whatever new regulation the SEC chooses to approve and put into effect won’t change that, claims Tyler.
What does this imply for Gemini?
According to Gemini Trust, crypto custody creates challenges absent in traditional asset management, which promises to use technology tailored to digital assets.
Banking organizations, trust corporations, and securities brokers are typical examples of businesses capable of serving as qualified custodians. Yet companies like Coinbase have started to offer services in recent years. This is due to the challenges in guarding against the theft and hacking of digital assets like Bitcoin.
Furthermore, Tyler said Gemini Trust’s storage device has SOC 1 Type II and SOC 2 Type II certifications while emphasizing that BSA/AML and cybersecurity requirements apply to the capital.
Per recent reports, Gemini Trust Company is subject to routine inspection, much like a bank. These compliance specifications, as a whole, confirm that Gemini Trust Company’s operations and security procedures adhere to the highest standards.
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